6 minute read
FRESH CLIPPINGS
HOME SERVICE BUSINESS OUTLOOK STRONG BEYOND FOURTH QUARTER
Home service businesses continue to outperform other industries as demand for professional home services remained high in the fourth quarter of 2021. That demand will only be tampered by the ongoing workforce shortage.
Advertisement
A booming real estate market and domestic supply chain bottlenecks are expected to continue, which means high prices for business owners, according to Jobber’s Home Service Economic Report for the third quarter. Jobber surveys the more than 100,000 users of its business management software to create data for its reports.
Customer Demand is Up
Takeaways:
• Invoice sizes saw an increase across the
Home Service category in these segments: cleaning, contracting and green. • Service providers who increased their headcount were able to schedule more work and increase revenue faster. • Although growth in new work scheduled is slower due to resource limitations, revenue growth in Home Service remains healthy due to the rise in invoice sizes. • Green segment growth in new work scheduled during the third quarter 2021 continues to stay positive at just under 10% growth year-over-year. • Home Service saw a substantial consumer price increase in the last 12 months. • Revenue growth in Home Service outperformed all other categories in the third quarter.
Typically, Jobber reports, the amount of new work scheduled goes hand-in-hand with revenue performance. In other words, the more new jobs scheduled, the more money companies make. In the third quarter of 2021, however, the rate of new jobs slowed. Yet median revenue is growing. Essentially, green industry contractors are unable to keep up with the demand for work, but the invoices they’re billing out are larger than usual. The green industry experienced very high growth last year as consumers invested more in outdoor projects such as landscaping, which could be done while “Essentially, green industry contractors are staying within the parameters of physical distancing. The growth in new work scheduled in the third quarter of 2021, unable to keep up with although below the growth rate of the same quarter in 2020, stayed positive at the demand for work, just under 10% growth year-over-year. but the invoices they’re billing out are larger than usual.” Economic Pressures Inflation, high consumer demand and a shortage of workers means home services businesses are pinched for workers, reducing the number of jobs they can take on. According to the U.S. Bureau of Labor Statistics, the 12-month change in overall Consumer Price Index (CPI), or changes in consumer prices grew from 1.4 at the start of the year to 5.4% in Sept 2021, the report states. Future growth in the green industry is likely, the report states.
greenindustrypros.com/21928194
BLACK & DECKER BUYS PARENT COMPANIES OF CUB CADET, TROY-BILT, HUSTLER TURF
Stanley Black & Decker has completed the acquisition of two companies in the outdoor power equipment industry, including purchasing the remaining 80% ownership stake in MTD Holdings Inc., and the acquisition of Excel Industries.
These transactions complement Stanley Black & Decker’s position as the fastest growing provider of cordless electric outdoor power equipment with brands such as DEWALT, CRAFTSMAN and BLACK+DECKER.
The purchase price for the two transactions totaled $1.9 billion inclusive of standard purchase price adjustments.
MTD is known for lawn mowers, snow blowers, trimmers and outdoor power equipment for residential and commercial markets. The MTD family of brands includes Cub Cadet, Troy-Bilt, Robomow, Rover and WOLF-Garten.
Excel is a manufacturer of commercial and residential turf equipment under the brands of Hustler Turf Equipment (Hustler) and BigDog Mower Co. (BigDog). In 1964, Excel introduced The Hustler, creating an entirely new product category now known as the zeroturn mower. Excel serves 1,400 dealers in the U.S. and Canada.
greenindustrypros. com/21928421
The Irrigation Association (IA) released its study: Economic Impact of the Irrigation Equipment and Services Industry. This study was produced in partnership with the Irrigation Association and the Irrigation Innovation Consortium.
Released on Dec. 2, this study shows an industry estimated at a $9 billion direct economic impact and a $23.3 billion impact when including indirect induced impacts. This translates to over 70,000 industry-wide jobs, or 167,000 jobs when secondary impacts are included. This study shows the impact the irrigation industry has on the economy and, when compared to a 2010 study, demonstrates the industry’s ability to overcome challenges and innovate.
The full study is available for review online.
greenindustrypros. com/21940093
RISE Lobbies Against Pesticide Regulation Changes
RISE (Responsible Industry for a Sound Environment) recently joined more than 350 pesticide user organizations, sending a letter to all members of the U.S. Senate and House of Representatives voicing support for the pesticide regulatory system currently in place under the Federal Insecticide, Fungicide and Rodenticide Act (FIFRA).
This letter responded to legislation, S. 3283, introduced by Sen. Cory Booker (D-N.J.) that would undermine the standards of FIFRA and impact the availability of the pesticide products.
The proposed legislation would change the availability of certain U.S. Environmental Protection Agency registered pesticide products and place limitations to what is available for professionals to treat residential, commercial and public spaces.
S. 3283 would impact: • Products and applications made for vector control
©New Africa – stock.adobe.com
• Protecting and enhancing homes and public places • For noxious and poisonous weed control • Creating firebreaks and utility rights of way • Protecting public infrastructure • Controlling plant species that harm native species and ecosystems
RISE will continue actively monitoring S. 3283 and other anti-pesticide legislation. At this time, no companion bill to S. 3283 has been introduced in the U.S. House of Representatives.
greenindustrypros. com/21993095
ManageMowed Expands Across US
ManageMowed, a commercial landscaping management franchise, is expecting major growth in 2022.
The landscape management company opened 18 new locations in 2021 and signed 12 new franchise agreements with a mix of single-unit and multiunit deals. ManageMowed is now expanding its services to several new markets across the U.S., including Texas, Oklahoma, Missouri, North Carolina, California and Colorado.
“This year presented our brand with the perfect opportunity to reach aspiring and experienced entrepreneurs who were looking to make a career change and set out to become their own bosses,” says Peter Roberts, co-founder of ManageMowed. “With our minimallabor, no-equipment-needed business model, our franchisees can achieve success without compromising a work/ life balance. I’m proud of all we’ve accomplished this past year and we are excited to continue building the momentum moving into 2022.”
ManageMowed’s subcontracting model allows its teams to focus on managing client relationships and a network of local owner-operator landscape vendors, instead of purchasing, storing or maintaining landscaping equipment on its own.
ManageMowed aims to give businesses the resources necessary to attract new customers and make a lasting first impression. The company also focuses on enhancing safety, security and property preservation for its clients.
Looking to give back to commercial businesses and community residents who were unable to take care of their landscaping during the pandemic, ManageMowed launched its 2021 giveback efforts with the MGives philanthropy program. The company was also a sponsor of the Pink the Rink Golf Tournament, which raised over $40,000 for breast cancer awareness in Edmonds, Wash. in August.
greenindustrypros. com/21952640
